Education is probably not the first sector that springs to mind when searching for new investment possibilities. Likewise, stocks in the education sector may not be the first thing that comes to mind when looking for new investment opportunities. However, due to the COVID-19 pandemic, online learning has become an enormous business.
There are a variety of educational institutions. Some operate traditional campuses, while others are technology businesses. Others provide a mix of natural and virtual services. After-school tutoring programs are increasingly popular, and for-profitable business opportunities, despite receiving a lot of negative attention, are still gaining traction and delivering essential job skills in various sectors.
What are Good Education Stocks?
The pandemic had a significant influence on education. According to a 2020 UN policy paper, the virus has affected nearly 1.6 billion people in almost 190 countries. Many schools and educational institutions were typically closed as a result of it. However, the education management organization sector has weathered the storm well, despite COVID-19’s disruptive effects. Even though educational institutions have been harmed, some scholarly businesses have utilized this to their advantage.
In the days following, schools and colleges were forced to adopt new teaching methods. In addition, the education system has seen several advances in online courses, self-taught learning, and virtual learning check-ins since the epidemic began. Some of these educational equities have had a significant influence on these changes. The best education companies are based on your portfolio and investing goals; fluctuations may be perfect for day traders, but long-term investors will want to focus on stocks with more consistent gains.
Take a closer look at what school and learning industry companies do and how their stocks have historically performed if you’re interested in investing in schools or educating. Remember, a supply’s prior success does not guarantee future success.
Top education stocks
Chegg (CHGG) –
Chegg, Inc. is a direct-to-student learning platform that helps students start with their academic path and continue into their careers by providing products and services to help them better understand their educational course materials. Chegg provides Chegg Services, which include subscription services, as well as materials that are necessary for its print textbooks and eTextbooks.
Chegg opened the day at $23.49, up from yesterday’s close of $23.59. The most recent price was $22.58 (25-minute delay). Chegg is a for-profit educational technology company listed on the NYSE with a trailing 12-month revenue of about $780 million and 2,464 employees.
GSX Techedu (GSX) –
In the People’s Republic of China, GSX Techedu Inc., a technology-driven education organization, provides online K-12 after-school tutoring services. Math, English, Chinese, physics, chemistry, biology, history, geography, and political science are among the numerous K-12 academic disciplines covered by its K-12 after-school tutoring programs.
The GSX Techedu stock opened the day at $15.44, closing the previous trading session at $16.15. The current price is $15.67 (25 minutes delayed). GSX Techedu is an NYSE-listed firm that has revenues of approximately USD$7 billion and serves 22,570 people.
Houghton Mifflin Harcourt Company (HMHC) –
Houghton Mifflin Harcourt (HMH) is a leading education publishing firm that develops K–12 curriculum and professional development solutions. The company operates an international curriculum, supplemental intervention solutions, and expert learning services. Under the Heinemann brand, it offers instructional online education programs in reading, literature, math, science, and social studies; and extensions like supplementary and intervention solutions, professional services, professional resources, and educational services for instructors.
On October 7, after a close of $10.23, Houghton Mifflin Harcourt stock opened at $10.47 and has fluctuated between $10.60 and $11 since then. The current price is $10.58 (25-minute delay), which is the lowest in six weeks. Houghton Mifflin Harcourt Company plc trades on the NASDAQ and has an estimated revenue of about USD$1 billion for the trailing 12 months.
Stride (LRN) –
Stride, Inc., a technology-based education company aims, to provide a proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. In addition, the firm offers technology-based solutions and other services to assist clients in attracting, enrolling, teaching, monitoring progress, and helping students.
The day’s first direction was Stride stock, which began at $43.51 after a previous close of $43.46. The price was $42.76 today (25-minute delay). Stride is an NYSE-listed company with around USD$1.6 billion and 7,100 employees worldwide.
American Public Education (APEI) –
Together with its affiliates, American Public Education, Inc. provides both online services and campus-based postsecondary education. The company is divided into three sectors: the American Public University System, Rasmussen University, and Hondros College of Nursing.
The stock exchange opened the day at $22.20 after a close of $22.11, up from its opening price of $22.19 on Friday, which was up from the previous closing price of $21.81 on February 2 (a 25-minute delay). American Public Education is a NASDAQ-listed firm with sales of around USD$485 million over the last year and 2,590 employees.
Grand Canyon Education (LOPE) –
The mission of The Grand Canyon Education, Inc. is to provide education services to colleges and universities in the United States. Academic services include program and curriculum, faculty and related training and development, class scheduling, and skills simulation lab sites; counseling services and support also have admissions, financial aid, and field experience.
The day began with the Grand Canyon Education shares at $90.95, following a close of $90.88. The most recent price was $90.79 (25-minute delay). Grand Canyon Education is a NASDAQ-listed company that had revenue of approximately USD$903.8 million in its trailing 12 months and has 3,680 employees.
2U (TWOU) –
The University of Phoenix for-profit college students in the United States and internationally. The company has two segments: Degree Programs and Alternative Credentials.
The stock price has skyrocketed from $2.59 to $47 in less than three weeks, despite a minor pullback at the start of April. The stock opened the day at $43.51 after a previous close of $43.31, and it closed at $44.20 (a 25-minute delay). 2U is a NASDAQ-listed firm that had revenue of roughly USD$966 million over the past year and employs 3,982 people.
Adtalem Global Education (ATGE) –
Adtalem Global Education Inc. is a global education services firm. It has two divisions: Medical and Healthcare; and Financial Services.
After a close of $36.94, Adtalem Global Education’s stock opened the day at $37.04, with a range of $35.50 to $37.79 (25-minute delay). Adtalem Global Education is an NYSE-listed firm with sales of around USD$1.5 billion and 10,000 employees worldwide.
TAL Education Group (TAL) –
TAL Education Group offers K-12 after-school tutoring services in the People’s Republic of China. The firm provides tutoring for various academic disciplines, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. Xueersi, Xueersi Online School, First Leap, Tipaipai, Xiaohou AI, Xiaohoucode, Aiqidao, Mamabang, and Kaoyanbang offer small-class services; personalized premium services are provided under the Izhikang name.
After a previous closing of $4.65, TAL Education Group stock opened the day at $4.63. According to the NYSE page for TAL Education Group, the most recent price was $4.45 (25-minute delay). According to its website, TAL Education Group is listed on the NYSE and generates around USD$3.2 billion yearly.
Zoom Video Communications (ZM) –
Zoom Video Communications, Inc. provides a continent-wide unified communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. In addition, zoom has offices in Australia, the United Kingdom, and Singapore. The organization offers Zoom Meetings that allow for high-definition videoconferencing software, voice, chat, and content sharing using mobile devices, desktop computers, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to communicate via desktop computer software.
The stock price of Zoom Video Communications initially opened at $114.25, following a close of $113.85 yesterday. The most recent price was $114.51 (25-minute delay), according to Nasdaq. Zoom Video Communications is a NASDAQ company that generates around USD$4.2 billion in revenue annually and has 7,155 employees worldwide.
New Oriental Education-and-Technology (EDU) –
New Oriental Education & Technology Group Inc. is a China-based education consultancy that offers private educational services under the New Oriental brand. It is organized into four segments: K-12 AST, Test Preparation Services and Other Courses; Online Education; and Others.
The stock of New Oriental Education and Technology opened the day at $8.78, having closed at $9.54 the previous day. The current price is $8.31 (25 minutes late). New Oriental Education and Technology is an NYSE-listed firm with yearly revenue of around USD$3.1 billion.
Trends in the education sector
The COVID-19 epidemic disrupted education in 2020. To the profit of companies offering virtual schooling and online educational content, students of all ages switched to online learning.
The overall education system is changing rapidly, with a long-term trend of decreased college enrollment rates. The decrease in yearly enrollments has been 1.67% on average since 2010. Technology also shortens attention spans, motivating people to consume educational material in small 15-minute sessions instead of more extended periods.
Two more to consider are Coursera (NYSE: COU), which provides students complete control over their curriculum, and Cornerstone OnDemand (NASDAQ: CSOD), a microlearning industry leader that bought Grovo in 2018.
Is Strategic Education Stock a Buy?
Strategic Education has a consensus recommendation of Buy. The firm’s average rating score is 3.00 based on two buy ratings, no hold ratings, and no sell ratings.
Should you buy education stocks?
Some good education businesses may make excellent investments in your portfolio. However, the best education stocks are those from firms that have shown themselves to be flexible and able to expand despite industry downturns.
The Final Thoughts on Education Stocks
Education equities are poised to profit from industry developments. Education may be a great way to diversify your portfolio, but you should keep in mind the dangers. Here, research comes into play. As a result, the return on any investment is never guaranteed.
While education equities may generate a profit, keep in mind that — like any other investment — they are not immune to danger. The stock market is unpredictable and volatile, so be sure that your picks are carefully researched before you invest. And if you’re new to investing or haven’t thoroughly examined your trading accounts in a long time, compare brokers to see whether you’re getting the most out of your trading account.
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